Bringing up baby – Make sure your valuator understands upstarts
Abstract: In spite of the sagging economy in parts of the United States, many ambitious entrepreneurs are still in the business of starting up new companies. The trick is: How do these entrepreneurs value their upstarts? Companies that have been in business a long time have years of data behind them to help establish a sound valuation. But it’s quite a different story when it comes to newer ventures. This article discusses the factors that valuators look at to estimate a startup’s future performance and to gauge the level of risk involved.